EU to Halve Steel Import Quotas and Raise Tariffs to 50% - A New Era of Trade Protectionism Begins

The European Commission is preparing one of its most aggressive trade defenses in recent years: cutting steel import quotas by nearly half and doubling tariffs on imports exceeding those limits from 25% to 50%. The new policy, set for release on October 7, aims to align EU trade defenses with those of the U.S. and Canada and counter global steel overcapacity, particularly from subsidized Chinese mills.

Under the plan, the EU's "quota + excess tariff" model will remain, offering more flexibility than the flat tariffs in North America. Yet the impact is expected to be profound: Europe's steel import allowance is already 26% higher than initial levels while demand continues to fall.

This adjustment not only signals a tightening of the EU's steel safeguard measures but also paves the way for a broader “Metal Alliance” with the U.S. integrating trade rules across steel, aluminum, and scrap metals. The move underscores a coordinated Western effort to shield domestic industries from low-cost global supply and to reassert industrial sovereignty amid growing economic fragmentation.